NORTH CAROLINA LIFE AGENT FINAL EXAM
Life insurance and Annuity Replacements define replacement as - Answers -
exchanging an existing policy for a new policy
S is a life insurance policyowner and enters into a written agreement to receive
immediate cash in exchange for the sale and transfer of her life insurance policy. This
agreement is referred to as a(n): - Answers - Viatical Settlement
P died five years after purchasing a life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take? - Answers - Beneficiary will be paid the
Death Benefit
The circulation of written literature that is maliciously critical of an insurer's financial
condition is called - Answers - Defamation
Which of the following is TRUE about a qualified retirement that is "top heavy"? -
Answers - More than 60% of plan assets are in key employee accounts
What type of life policy covers two people and pays upon the death of the last insured? -
Answers - Survivorship
North Carolina requires that an insurance agent must complete __ hours of continuing
education on the subject of law and ethics every two years. - Answers - 3
Which premium schedule results in the lowest cost to the policyowner? - Answers -
Annual
A noncontributory group term life plan is characterized by: - Answers - The entire cost
of the plan is paid for by the employer
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - Answers - 20-Pay Life
accumulates cash value faster than Straight Life
The PRIMARY purpose of the life insurance replacement regulation is to protect the: -
Answers - Interests of policyowners
How long does the coverage normally remain on a limited-pay life policy? - Answers -
Age 100
K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? - Answers - Level
, If the insured and primary beneficiary are both killed in the same accident and it cannot
be determined who died first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act? - Answers - Insured's contingent beneficiary
A life insurance company cannot declare a policy lapsed or forfeited within one year
after default in premium payment, unless it has mailed a notice indication the amount of
premium due. This requirement only applies to policies with and - Answers - Annual
premium schedule
Which provision is NOT a requirement in a group life policy? - Answers - Accidental
What kind of life policy either pays the face value upon the death of the insured or when
the insured reaches age 100? - Answers - Whole Life
Insurance policies offered on a "take it or leave it" basis are considered what? -
Answers - Contracts of Adhesion
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the
funds were rolled over? - Answers - Income taxes plus a 10% penalty tax on $30,000
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - Answers - Life Income
Each agent who initiates an application for life insurance or annuity for replacement of
an existing policy shall submit which of the following as a part of the application? -
Answers - A signed statement by the applicant regarding the replacement
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - Answers - Variable Universal Life
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual
life insurance, would require how many policies? - Answers - 6
The Commissioner of Insurance is responsible for - Answers - Administering insurance
laws
Which of the following combination plans is designed to protect and insured from an
unpaid mortgage balance upon premature death? - Answers - Joint Life
A(n) ______ Life policy offers the owner investment in products such as money-market
funds, long-term bonds and equities. - Answers - Variable
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
Life insurance and Annuity Replacements define replacement as - Answers -
exchanging an existing policy for a new policy
S is a life insurance policyowner and enters into a written agreement to receive
immediate cash in exchange for the sale and transfer of her life insurance policy. This
agreement is referred to as a(n): - Answers - Viatical Settlement
P died five years after purchasing a life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take? - Answers - Beneficiary will be paid the
Death Benefit
The circulation of written literature that is maliciously critical of an insurer's financial
condition is called - Answers - Defamation
Which of the following is TRUE about a qualified retirement that is "top heavy"? -
Answers - More than 60% of plan assets are in key employee accounts
What type of life policy covers two people and pays upon the death of the last insured? -
Answers - Survivorship
North Carolina requires that an insurance agent must complete __ hours of continuing
education on the subject of law and ethics every two years. - Answers - 3
Which premium schedule results in the lowest cost to the policyowner? - Answers -
Annual
A noncontributory group term life plan is characterized by: - Answers - The entire cost
of the plan is paid for by the employer
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - Answers - 20-Pay Life
accumulates cash value faster than Straight Life
The PRIMARY purpose of the life insurance replacement regulation is to protect the: -
Answers - Interests of policyowners
How long does the coverage normally remain on a limited-pay life policy? - Answers -
Age 100
K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? - Answers - Level
, If the insured and primary beneficiary are both killed in the same accident and it cannot
be determined who died first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act? - Answers - Insured's contingent beneficiary
A life insurance company cannot declare a policy lapsed or forfeited within one year
after default in premium payment, unless it has mailed a notice indication the amount of
premium due. This requirement only applies to policies with and - Answers - Annual
premium schedule
Which provision is NOT a requirement in a group life policy? - Answers - Accidental
What kind of life policy either pays the face value upon the death of the insured or when
the insured reaches age 100? - Answers - Whole Life
Insurance policies offered on a "take it or leave it" basis are considered what? -
Answers - Contracts of Adhesion
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan, minus $6,000 for income tax withholding. Which federal taxes apply if none of the
funds were rolled over? - Answers - Income taxes plus a 10% penalty tax on $30,000
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - Answers - Life Income
Each agent who initiates an application for life insurance or annuity for replacement of
an existing policy shall submit which of the following as a part of the application? -
Answers - A signed statement by the applicant regarding the replacement
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - Answers - Variable Universal Life
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual
life insurance, would require how many policies? - Answers - 6
The Commissioner of Insurance is responsible for - Answers - Administering insurance
laws
Which of the following combination plans is designed to protect and insured from an
unpaid mortgage balance upon premature death? - Answers - Joint Life
A(n) ______ Life policy offers the owner investment in products such as money-market
funds, long-term bonds and equities. - Answers - Variable
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
